Goldman Sachs has reduced its price target for Take-Two Interactive (NASDAQ:TTWO) to $270.00 from $280.00 while retaining a Buy rating on the video game publisher's shares. The move follows Take-Two's release of fiscal third-quarter 2026 results and updated commentary from management.
Shares of Take-Two were trading at $212.17 at the time Goldman adjusted its target. The stock has faced recent weakness, sliding 12.75% over the past week and falling 17.13% year-to-date.
Take-Two's fiscal third-quarter 2026 report showed solid bookings that outpaced expectations and prompted the company to raise its full-year 2026 guidance. Management credited the quarter's performance to strong reception and monetization from key franchises, including Match Factory, NBA 2K26, and GTA Online.
Operational metrics cited by third-party services indicate Take-Two recorded 20.34% revenue growth over the trailing twelve months, despite not delivering a profit during that same period. Street estimates point to a return to profitability this fiscal year, with analysts projecting earnings per share of $3.30.
During the earnings cycle, Take-Two reaffirmed the November 19 launch date for Grand Theft Auto VI. Goldman Sachs framed the game’s upcoming release as "a pivotal step toward establishing a higher financial baseline" for the company. Management also indicated plans to disclose commentary on its initial three-year pipeline covering fiscal years 2027-2029 when it reports fourth-quarter results in May.
Analyst sentiment beyond Goldman remains broadly optimistic. The consensus recommendation sits at 1.31, with individual price targets spanning from $160 to $300, reflecting a range of expectations across the sell-side community.
The company disclosed that it has increased fiscal year 2026 operating expenses on an absolute basis to accelerate mobile user acquisition spending. This strategic step, taken in response to favorable signals from current operations, is intended to fuel sustained growth in mobile channels.
Goldman Sachs characterized Take-Two as "operating from a position of strength" and noted that "the narrative surrounding GTA VI remains intact." The bank attributed its price target reduction to updated forward operating estimates that incorporate the company's reported results and management's guidance.
In related coverage of the quarter, Take-Two reported adjusted earnings per share of $1.23 for the third quarter of fiscal 2026, beating analyst expectations of $0.83 and representing a 48.19% surprise. Revenue reached $1.76 billion, above the anticipated $1.59 billion. Despite these beats, the stock fell in after-hours trading following the release.
Meanwhile, BofA Securities reiterated a Buy rating on Take-Two and kept a price target of $295.00. That call came against a backdrop of investor concerns about the potential impact of Google's Genie 3 AI model on AAA game publishers. BofA described the recent weakness in Take-Two shares as a "particularly attractive buying opportunity."
Taken together, these developments mark significant near-term milestones for Take-Two as it balances increased investment in mobile user acquisition, prepares for a major product launch, and navigates evolving investor views on competitive and technological risks.